The Ethereum liquidity staking protocol Rocket Pool is poised on the cusp of a monumental shift with the impending Dencun upgrade. A fervent community advocate highlights that this evolution is anchored in the enhancements brought about by the forthcoming Houston upgrade. The implementation of the Dencun upgrade is a stepping stone, paving the way for the implementation of Houston’s advanced capabilities aimed at augmenting Rocket Pool’s scalability and efficiency.
With the Dencun upgrade set to be operational by mid-March 2024, it serves as a vital precursor for the Houston upgrade to deploy its wide array of improvements to the protocol’s performance. The hard fork update necessitates Ethereum node operators to update their software, setting the stage for a substantial decrease in transaction costs across layer-2 networks, as anticipated by developers.
Additionally, the Dencun upgrade bears significant responsibility for enacting Ethereum Improvement Proposal (EIP) 4788. This enhancement focuses on streamlining the communication between the execution layer, the hub for smart contracts and transactions, and the consensus layer, home to validators like Rocket Pool. The proposal’s key feature enables the execution layer to garner consensus layer data autonomously, sans the need for external oracles, bolstering the mainnet’s security and operational fluency.
Upon the Houston upgrade’s activation, a host of refinements are set to enhance the user experience within Rocket Pool. The upgrade will automatically reduce the minimum ETH staking threshold, creating a more inclusive staking environment for users. Moreover, the introduction of a delegated mini-pool contract is poised to optimize the distribution of fees and rewards. In the realm of Rocket Pool, a mini pool represents an aggregated pool of ETH from various stakers.
The activation of EIP-4788 will forge a path for Rocket Pool to pioneer further innovations in ETH staking. Market sentiment towards these advancements is optimistic, as evidenced by the upward trajectory of RPL, Rocket Pool’s native token.
As of March 6, RPL carved a new path above its February highs, soaring past $33. Market enthusiasts are riding this bullish wave, anticipating a continued ascend towards the January 2024 highs of about $40. On March 7, RPL registered an almost 110% appreciation from its October 2023 lows. Despite this surge, RPL has yet to fully rebound from the bearish phase of 2022, where it had briefly touched a peak of $65.